tv CNN Newsroom CNN July 29, 2011 11:00am-1:00pm EDT
you've covered bickering like this before. what do you make of this? >> i've never seen it this bad. we've covered the economic stimulus packages t.a.r.p., health care reform, people are incredibly frustrated when they see what's happening in washington. so this is really unprecedented when you think about it. nobody really knows what's going to happen come tuesday and wednesday of next week. >> so the combination of not knowing what's going to happen and then all the different areas of our lives that it can impact us from our kids going to school, right, to buying a home, to getting a car loan, to our credit cards, all of us talking about that this morning in the morning meeting. >> right. it could make it much harder for us just to live. i mean, in this tough time already for so many people. so it's unbelievable. we just don't know. we're at a point where there is a lot of concern because it is so uncertain.
and people are following it, they're talking about it. >> and they'll be doing that for the next two hours. hope fly we'll have something by the beginning of next week. live from studio 7, want to get you up to speed for this friday, july 29th. we're will thalmost out of time. those words from president obama. the deadline for raising the country's debt limit now just four days away. and congress and the white house still gridlocked over what to do. the president says there are plenty of ways out of this mess, but the clock is ticking. >> what's clear now is that any solution to avoid default must be bipartisan. it must have the support of both parties that were sent here to represent the american people, not just one faction. itle have to have tsupport of both the house and senate. >> a lot of you understandably angry, frustrated over this debt
standoff. and you've been telling us about it. >> disaster. >> ridiculous. >> joke. >> irresponsible. >> pitiful. which stupid. >> ridiculous. >> horrible. >> complex. >> pitiful. >> i think sucks. >> well, almost two years after the ft. hood shooting spree, police arrested an awol american soldier after fbi agents found potential bomb making agents in his hotel room. he reportedly told investigators he wanted to attack troops at ft. hood. his arrest triggered by a tip from a gun shop salesman. >> the last thing in the world that i would accept would be an accolade as being some kind of hero. i'm not. i'm an average guy. in norway, a day to honor the victims of last friday's
deadly bombing and shootings. mourners gathered this morning for a memorial service this oslo. these scenes just moments after last week's bombing near a government building in the n norwegian capital. today miss apolice are questione suspect for a second time. nato planes continue hammer libya, but despite gains on the battlefield, rebel fighters just lost their top commander. general abdul eunice was killed in the port city of benghazi. it's not clear how he died. his supporters say rebel leaders were about to question him about alleged ongoing ties to moammar gadhafi. meanwhile the woman who told the world that sheed been raped by gadhafi's forces and then fled for her life is now living
in the united states. she flew to new york late last night and then boarded another flight to a final undisclosed location. torrential rains have moved out of south core re, a bkor rk there's a chance for more. the dheath toll is at least 51. >> to show you just how erratically the water levels have receded. on thursday, i wouldn't be able to stand on this bridge. there was a ferocious tore rent of water that was coming down here. the paths on both sides were completely covered and the water levels were several feet higher. the maker of tylenol is changing the recommended maximum daily dosage to reduce accidental overdoses from 8 a day to just 6 a day. earlier this year, the fda asked
all drug companies to limit acetaminophen in an effort to reduce the risk of liver damage. the former astronaut who attacked a romantic rival is forced to retire from the navy. prosecutors said that lisa nowak drove from houston to orlando wearing nasa diapers to avoid making pit stops. she attacked a woman who was dating her former love interest. know back served a year on probation under a plea deal and her lawyer denied she wore those diapers. more on the debt standoff in the crisis that is getting more urgent with each passing hour. we have house speaker john boehner trying to wrangle enough votes to get his plan through the house. and then you have harry reid, he's pushing for the senate to move ahead, as well. president obama says the two sides are not that far it apart. boehner's plan would hike the debt limit by $900 billion now, $915 billion in cuts over ten years or so.
but it would also require a second vote. re read joe johns joins us from washington to talk about all of this, the latest behind the creeps, t scenes. first i understand that there might be actually be a vote taking place early sunday morning or perhaps monday. where are we in this process? >> this would be all part of the legislative chess game senator harry reid going to the floor giving the broad outlines saying it's time for him to act on his proposal because the house tied up in knots or whatever. and behind the scenes, people are making the case that, look, in order to get something you to the floor of the senate voted on in time to meet the august 2nd deadline, they would have to have a vote as early as sunday
morning, 1:00, 2:00 sunday morning. which would put them into a legislative session on tuesday where they would take that vote tuesday being august 2nd, the deadline day, which would mean that the house of representatives, which has been doing all the dawdling so far, would have to move quite quickly. so the muscle flex, whatever you want it cato call it, this is h ball at the united states capitol now. >> we're calling it a hot mess essentially. does either boehner's plan or reid's plan stand a chance of passing? >> well, we're also hearing, and i don't think this has been fully reported out yet on cnn over tv, but we're also hearing that there was is this some talk last might that republicans who were holding out wanted a
balanced budget amendment included in some form or fashion in the boehner bill and now we're hearing that there are going to be attempts to take an amendment and put it into the boehner bill and pass it out, which might get some extra votes and get boehner over the top. so passing out of the house of representatives, once depend looking like a bit more of an optimistic idea, meanwhile we're told it's dead on arrival in the senate. >> so is there another plan in place? what happens next? >> we've got senator mcconnell, the republican leader over on the senate side, has some of his ideas. they're hoping to meld some of those in and see what comes out of all of this. but they're running out of time. >> clearly running out of time. joe, thank you very much. we'll be following all the various twists and turns. appreciate it. here's a run down some of the stories we're covering.
first new numbers on the state of the economy. it's not good. americans were not spending last quarter. and incredible video as a jet skids off the runway during an air show. and then how police say workers at this gun store helped stop another terror attack on ft. hood. also tropical storm don expected to hit texas with lots of rain as early as tonight. we're live from south padre island. and next hour, chaka khan struggled with addiction for year, but now she is back on track. she wants to give back. hear my one-on-one interview with the queen of soul.
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cnnmoney.com lead sorry now. the economy grinding to a halt here. we're talking with growth in the first quarter slower than expected. dow jones down about 14 points or so. wall street as more to water about today than just the debt crisis. we're talking about a new report that shows that the economy grew at a sluggish pace during the second quarter this year and growth in the first quarter was even slower than folks thought. all that plus the debt limit stalemate. it's making investors a little uneasy. allan chernoff is joining from us the new york stock exchange. what's the biggest concern now? it seems to be the gdp report, is that right? >> well, it if we look in the rear view mirror, certainly the gdp report confirms to us that things were not good during the
first half of the year. in fact, worse than we had thought as yyou just mentioned. during the second quarter, fr t growth of only 1.3%. normal growth is closer to 3%. that's what the economy should be growing at to increase jobs for the economy to seriously move forward, so we were only at 1.3%, less than half of that anticipated expected normal growth rate. and during the first quarter, even worse. only 0.4 of oone-fourth of 1%. that's add in what's going on in washington. corporations around the country and the world depend very much on government spending, right? so if the government is stuck in
gridlock, that means government won't be spending money. when government spends money, they hire contractor, they hire companies to do their building, on to do their projects. it money is not coming out of washington, why should any companies spend money, why should they hire people. so this is serious stuff. it's not only affecting what's going on in washington. it's affecting people around the nation, especially those folks who are out of work right now. >> all right, not good news, but news that we need to know nonetheless. thank you. sometime for a cross-country look at other stories we're following. frightening moments at an air show in oshkosh, wisconsin. an f-16 fighter jet slid off the runway while landing and crashed into the grass. the pilot was not hurt. the plane is based with the alabama air national guard. the midwest more flooding, heavy rain, traffic on i-94 in detroit ground to a halt after a
downpour during the morning commute. police had to shut down parts of the busy tree way until the water went down. parts of dubuque, iowa, also under water after torrential rain. the city closed its floodgates along the mississippi river because of high water. dozens of people were evacuated from a mobile home park. and police in texas say they stopped a planned attack on ft. hood just in the nick of time. >> he shows up here in a taxi cab. how many people go shopping in gun stores in a taxi cab? >> we'll hear from the gun shop salesman who tipped off police about the suspect, an awol american soldier. lities. in here, the planned combination of at&t and t-mobile would deliver our next generation mobile broadband experience to 55 million more americans, many in small towns and rural communities, giving them a new choice. we'll deliver better service, with thousands of new cell sites... for greater access to all the things you want,
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police in texas may have stopped an attack on ft. hood before it could get under way. the suspect an awol american soldier is due in court the next hour. he is now under arrest after potential bomb making materials were found in his rohotel room. a retired police officer tipped off place. >> reporter: private first class naser abdo will be making hiss first court appearance in wac off the. he's accused of planning a deadly attack on ft. hood soldiers. >> a springfield xb. >> reporter: from the moment greg ebert set eyes on naser abdo, he said something didn't seem right. >> he shows up in a taxi cab. how many people go shopping at gun stores in a taxi cab? >> reporter: the army private spent about 20 minutes inside the guns xwa georg galore gun sd
he said asked old questions. >> he selects the canisters and asked what it was. why are you buying it if you don't know whats? >> reporter: he then spent almost $250 on on a handgun magazine, three boxes of shotgun shells and six pounds of smokeless gunpowder. >> he paid cash, took his bag and left without the receipt or his change. >> reporter: left without his change? >> wasn't much. like 18 cents, 20 cents. >> reporter: ebert is a retired 20 year law enforcement veteran. that was old cop's hunch that led him to report the customer to police. and within 24 hour, officers hunted him down and say they unraveled abdo's deadly plan. >> we have interviewed hip and the information as a result of that interview as well as other leads that we're following up
on. that leads to us believe that military target personnel was targeted. >> reporter: but police say this attack wouldn't have occurred inside ft. hood like the deadly massacre in 2009 where major nadal hasan allegedly gunned down 13. instead abdo planned on attacking soldiers in popular gathering spots arm killeen just outside ft. hood. >> how close was speak. >> good question. i think we would probably be here giving you a different briefing had he not been stopped. >> reporter: law enforcement forces sell cnn bom making materials were found in abdo's room inside this hotel. another source says islamic extremist literature was found in his backpack. ft. hood is still hurting from that deadly massacre two years ago and greg we could beebert c but think what might have happen this had time had he not called police. >> i would be devastated
especially considering that i might have played some role in someone being seriously injured or killed. that would be very unsettling. >> reporter: abdo had gone awol back on july 4th after authorities charged him with possessing child pornography. after that he went missing and no one knew where he was until he turned up here in killeen. here's a look at today's choose the news stories. you can vote for the story out like to see. first a mother he'd diks passed on to her newborn baby. a shocking first hand look at a new mother who admits taking ox i company doan and is worried it's hurting her daughter. and korea is facing an thking number of cyber attacks. now the country is employing cyber soldiers to protect its most important servers. and third, art show meets
technology. a unique display in new york. we'll take you on on a tour of the human interaction with technology display. you'll see put rfuturistic itemt could soon be a part of your every day life. you can text one for born addicted, two for cyber soldiers and three for the tech knowledge art exhibit. winning story in the next hour. well, a business which wisc that he would always help people in need. he invites people who have fallen on hard times essentially to write him letters. and then he hits the ro towed s road to see them. >> when i go through suburbia america or the small town, everybody is trying to hold their head up in pride. >> i sold all my jewelry yesterday.
>> these people behind closed door, they tell their neighbors they're fine, and they go in the house and starve. >> the gas bill, i owe about $800. >> i find the situation is getting worse. they need food. they need help with their utilities. this is 2011 in america. we should be helping each other. my mission is to help my fellow americans who have fallen on hard times. and in a week i'll receive 20 to 30 letters. me and my family are in desperate need of help. i want to verify it's engine win and i want to give to them as quickly as possible. i know right now it's tough for even, but we'll be here for you and help you out. i tell them how i grew up in poverty and how i understand. here's $100 for gas. i help people with necessities of daily life and at the same time, i get them together on do a budget so they can continue to
survive. i brought this so you can get your wedding band back. i want them to feel free. >> that you think. >> i want them to feel the compassion that we're trying to share with them, to wrap our arms aern them and say, come on, i have a little strength i want it share with you and let's get you back on your feet. >> remember all cnn heros are chosen from people that you tell us about. so to nominate someone you know, go to cnnheros.com. if you're like many of us, you're trying to wrap your head around the whole debt limit crisis. think of it like a credit card. richard quest break it is down for us. [ nurse ] i'm a hospice nurse. britta olsen is my patient. i spend long hours with her checking her heart rate,
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here are some of the stories we're working on. next how the nation's debt crisis is very much like your own credit card woes. then why the damage may have already been done to the u.s. credit rating. and later, tropical storm don turns toward texas. why for some it's it actually good news. between anger, frustration, debt limit debate comes with a lot of numbers and plans. politicians are bickering over trillions of dollar, but it really all comes down to credit and how much the united states owes. our cnn's richard quest is breaking it down. >> i want you to think of the current current sis in terms of a credit card. it's been issued by taxpayers and bond holders. the bank of borrowers ps and it's been issued to the u.s. government. needless to say the government has a platinum credit card, it can borrow money and has done for many decades. this credit card has fueled the
u.s. economy. well, now the credit card bill has arrived. and it shows the story state of affairs. overspending over $118 billion a month. and that spending, you and i spend for clothes and meals and movies. in this case it's defense, medicare, social security. but there's actually very few areas that you can cut back on. this is pretty much all that can be cut. so that's the scenario. the u.s. credit card that we've just shown you has a debt limit much as you and i would have. in fact, exactly as you and i would have. but in the u.s. case, it's $14.3 trillion. thousand, when you and i overspend, we ring the bank and says raise the limit.u.s. has
done that 74 times since 1962, the year i was born. what has happened with the credit card in the bank has said august 2nd is the date when you can no longer borrow any who are. for some people they suggest it may be august the 15th, but it doesn't really matter which it is. when all is said and done, the credit card bill has arrived. the credit card is groaning under its own weight. and the u.s. government has been told by borrowers it's time to stop spending. richard quest, cnn, london. we got it, richard. well, a reminder to vote for today's choose the story. text your vote 22360. text 1 for borned addicted, a mother's account of taking a pain killer during her pregnancy and her fears about the drug's affect on her newborn.
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ground zero workers are furious over a decision this week by the government not to cover cancer treatment for responders who got sick after n 9/11. people sounded off about what happened after the dust settled. >> this is how we thank them? it's sad. it's immoral. here we should be trying to work our best to try to do whatever we can for them. we waste so much money in so many other locations. there should be more money. and what happens to those funds
after there's no more? what happens to all the other people that haven't had a chance to claim their claims? >> the centers for disease control says there simply isn't enough scientific data yet to draw a link between working at ground zero and cancer. motocross champion doug menry is used to breaking some bones, but within wipe out paralyzed hip from the waist down and despite that awful event, dr. sanjay gupta says that henry is back on his bike and proving that others can overcome tragedy. >> doug henry's racing career has taken him to incredible heights. and devastating lows. he's been in-ductsed in to the american motorcycle association hall of fame and won dozens of medals and trophies over the
years. look closely. you'll see this bike is modified with a bar and strap that help him stay on. that's because four years ago, the unthinkable happened and he was paralyzed. >> when i hit the wall, i was stuck between the bike, it was the end. it was it the end for me. it was all the over. >> henry's love affair with racing began when he was four. at 15, he entered his first race. had a mitt midair collision ande his arm. at 20, blhe broke his back but recovered. four more injuries, over 200 serious crash, but he always walked away. until march 4th, 2007. he lost control on a corner during practice. >> i knew it was over. everything just -- dancing.
i wasn't much of a dancer. but i knew i wasn't going to. i thought about all the things that we couldn't do or wouldn't be able to do together. >> it got worse. two weeks hater, his wife, stacey, was diagnosed with breast cancer. but together, they got through it. henry is partially paralyzed from the waste down, but it hasn't stopped him from competing. he's modified a snowmobile and dirt bike to race in x game competitions designed for disabled athletes. and he's winning races in his new sport. henry hopes he can motivate others whose lives have suddenly taken a detour and help them get back to doing what they love. >> i try to do as much as i can now and enjoy the day, just try to get the most out of my life. >> dr. sanjay gupta, cnn, reporting. and last november, the family was hit with another tragedy. their house burned down. but instead of focussing on
that, henry looked at thes positives. his wife is in remission, the kids are okay and he says no matter what, don't give up on your dreams. an amazing story. all the best to him. the debt debate is dragging down the public's opinion of leadership in washington. we'll have the results of a new cnn poll that says people are fed up with the fighting. i've been in your shoes. one day i'm on p of the world... the next i'm saying... i have this thing called psoriatic arthritis. i had some intense pain. it progressively got worse. my rheumatologist told me about enbrel. i'm surprised how quickly my symptoms have been managed. [ male announcer ] because enbrel suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, and nervous system and blood disorders have occurred. before starting enbrel, your doctor should test you for tuberculosis and discuss whether you've been to a region where certain fungal infections are common. don't start enbrel if you have an infection like the flu. tell your doctor if you're prone to infections,
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text 22360. 1 for born addicted. a mother's shocking first hand account of takiing a drug durin her pregnancy. text two for cyber soldiers. south korea's new defense depends hacker attacks. and text 3 for technology art exhibit. a showcase of futuristic items that could soon be a are the behalf everybody's life. the winning story will air in the next hour. >> the public is starting to get fed up with washington and its leadership. paul steinhauser, part of the best political team on television, joining us from the political desk. i understand there's a poll that shows that this might be costing politicians quite a bit in credibility. >> oh, yeah. a lot of americans fed up with what's going on right here in washington. and the leaders who try to deal
with this. a new poll from gallup asks do you approve or disaproof of how they're handling the crisis. 41% giving the president the thumbs up on the issue. that goes down to 31% for john boehner and only about a quarter of americans are giving harry reid a thumbs up on how they're handling negotiations. more proof i guess you could say americans don't think the leaders here are doing a good job. they just want the leaders to get the job done. >> and what about how they're using this in their political ads. >> i guess coming soon to a television near you, it's only heating up, the ad wars from both sides. the newest ad from a bunch of progressive groups and unions. this going up today in eight states across the country. it's targeting republican lawmakers for how they're dealing with the debt crisis. and earlier this week,
republican groups were doing the same thing, targeting democratic lawmakers and the president. so a lot of ads on both sides dealing with the debt crisis. i guess local television stations and cable networks are making ad revenue, but it just shows how big this struggle is right now. >> it's adding fodder, too, for the comedians. take a listen. >> our government is days away from being broke. congress' latest plan is to see how much cash they can get for john mccain on antiques road show. 33 soldiers from the mexican army were allowed to return to mexico yesterday after they accidently crossed the border into america. did you hear about that some heart. think about it. things have gotten so bad in in country that people are only crossing the border now by accident. according to a recent survey, this year kids are receiving an average of 40 cents less under their pillows from the tooth
fairy. enmake believe people are feeling the pinch. >> i don't know, he tried, don't you think? >> i tell you, this crisis is giving late night com he cans a lot of fuel, but unfortunately, it's not a laughing matter. so hopefully something will happen this weekend. >> all right, we'll be paying close attention. all the comedians, as well. a new report now mentions that there is one american company with more money on hand than the government. who do you think it is? also, it's bigger and brighter and now even easier to find cnn's most compelling video. we'll invite you to check out the bolded new look of cnn.com's ground breaking new video experience at cnn.com/video. to make science as exciting as a video game. i need to reach peter, who's falling behind. and push janet who's 6 chapters ahead. ♪
so one of the biggest concerns in this whole debt limit debacle is the risk to the u.s. credit rating. the major agencies are warning of a downgrade in the country's aaa rating and some investment chiefs say that the damage has already been done. >> first of all, in the real world, it has moved. anybody who knows about economics knows that the u.s. is no longer a aaa credit. now, yes, moody's and standard & poor's doesn't seem to know that, but they said fannie mae was a aaa credit unit the day went bankrupt. don't pay any attention to them went bankrupt. don't pay any attention to them. >> in the eyes of most serious investors including the chinese, there's already been a downgrade. whether the reallying agencies validate that or not is beside the point. want to bring in christine romans of our money team from
new york. christine, is this true, is the country's credit rating already been hurt by all of this because we've come so close to this deadline? >> many folks are saying that even if there were a miraculous deal right now to raise the credit limit, our credit card limit or the debt ceiling, you still have the united states in political disarray in the eyes of the world, you still have long term unsustainable structural deficits that have to be fixed and you clearly have washington who is not on the same page and many investors are saying it looks as though washington is unable, unwilling or simply doesn't understand well enough to understand how to get this fixed. so that is and ongoing problem for the united states. now, the irony here of course is that with all this uncertainty, the safest and most liquid investment in the world happens to be the united states treasuries. so that seems to be an ironry is that you still have people talking about that as the safest places to put your money. but merrill lynch coming out and saying that they don't see a deal getting done right now.
they expect a partial government shutdown for about a week, they expect a ratings down grade. a lot of other people saying they expect a ratings downgrade because they just don't like what they're seeing in washington. >> and tell us about this gdp report. how concerned should we be? >> the gdp report was weak and it add as wrinkle to this whole thing because does it mean that you cannot messing up the debt ceiling and having an immediate cut back this government spending that would hurt a very ak economy and make it weaker? the first quarter of the year, we've learned that the economy only grew 0.4%. that is not good at all. there you can see a bar chart, shows you thedepths of the recession on the left. and the last two bars, 0.4% first quarter of the year, second bar, 1.3% was the growth in the second quarter. that is not good enough to lower the unemployment rate.
that is not good enough to show an economy that is finding it footing. very worrisome. especially if you're talking about a quick pull back in good economy to find its footing. >> christine, i want you to take a look at the next story. it's unbelievable here. apple, the computer company, has more cash on hand than our federal government. according to the financial post, apple's cash reserve is $75.8 billion. washington has an operating balance of $73.7 billion right now. >> well, it shows you that appear sl a lot of rich company with a lot of cash on hand. >> what does that say about our government? >> we're spending more than we bring in. every dollar the u.s. government
spends to run our country, suzanne, 38 to 40 cents of it is borrowed. we run in very big numbers, and i guess the apple's bank account is very big as well. >> there's a lesson in here somewhere, i guess. >> yeah, more money than i have or you have. tropical storm don takes aim at texas, but that could be a good thing for the parched state. we will go live to padre island. first, americans are making progress paying down their personal debt. in the past year, people in 44 states cut the amount they owe according to a group credit karma, but we are still pretty big on borrowing. maryland residents have the third highest personal debt. they owe an average of $263,000, and hawaii is the second
highest. what state has the most personal debt? that answer coming up in a moment. .. what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong. new ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. see? he's a good egg. [ major nutrition ] new ensure high protein. ensure! nutrition in charge! with less chronic low back pain. imagine living your life with less chronic osteoarthritis pain. imagine you, with less pain. cymbalta can help. cymbalta is a non-narcotic treatment that's fda-approved to manage chronic musculoskeletal pain. one pill a day, every day, can help reduce this pain. tell your doctor right away if your mood worsens, you have unusual changes in mood or behavior or thoughts of suicide. antidepressants can increase these in children, teens, and young adults. cymbalta is not approved for children under 18. people taking maois or thioridazine or with uncontrolled glaucoma should not take cymbalta.
taking it with nsaid pain relievers, aspirin, or blood thinners may increase bleeding risk. severe liver problems, some fatal, were reported. signs include abdominal pain and yellowing of the skin or eyes. talk with your doctor about your medicines, including those for migraine, or if you have high fever, confusion and stiff muscles, to address a possible life-threatening condition. tell your doctor about alcohol use, liver disease, and before you reduce or stop taking cymbalta. dizziness or fainting may occur upon standing. side effects include nausea, dry mouth, and constipation. [ male announcer ] ask your doctor about cymbalta. imagine you, with less pain. cymbalta can help. go to cymbalta.com to learn about a free trial offer. [ coughing continues ] [ gasping ] [ elevator bell dings, coughing continues ] [ female announcer ] congress can't ignore the facts: more air pollution means more childhood asthma attacks.
[ coughing continues ] log on to lungusa.org and tell washington: don't weaken the clean air act. man on tv: ...rbis and 36 homers. swings at the first pitch and fouls it deep back into the stands. [ding] [fans whirring] announcer: chill raw and prepared foods promptly. one in 6 americans will get sick from food poisoning this year. check your steps at foodsafety.gov. who has the highest level of personal debt in the country? californians. residents on an average of $336,000 in credit card payments, home and car loans. but not to beat up on california, and it's also one of the top states in reducing personal debt over the past year. they have to work all that out, i guess.
the heads of a media news corp here. piers morgan was mentioned in the hearing. he was editor in chief of the news of the world. he went on to edit the rival paper. well during the hearing, a british member of the parliament accused piers of something. those allegations are in incorrect. there is no such admission of guilt. she is now retracting her statement and releasing an apology. in a letter released today she writes i wrongly stated that piers morgan, formerly editor of
the daily mirror had been open about personally hacking phones in a book he wrote. this was based on my misreading of a an article in the daily telegraph. well, rumors on twitter that morgan was suspended from cnn are also incorrect. tropical storm don has texas now in its sights. right now folks along the coast are making last-minute plans for the storm's arrival. where they don't want the win, they could certainly use the rain. rob, how are things going there from where you are? any sign of the storm yet? >> reporter: well, you could see the clouds off in the distance. you are getting a sunburn, and that's the case right now. folks on the beach east of
corpus christi, they enjoying the beach on a friday. they are out here to surf on the title pool and take a dip in the ocean. it will be a different scene in 12 hours, darker, and the rain will come in as will the wind. the stats has not gained much intensity. the landfall, the forecast track for the national hurricane center brings it somewhere between corpus christi, bringing it to a strong storm. the rainfall will be beneficial. texas had a long term drought, and a lot of folks that come down and vacation during the summertime are from texas. we caught up with one woman
here. >> from what i know, it's pretty bad because there is no water or food to feed the cattle, and everything is burnt. we have taken a big financial hit through the state of texas, and it's obvious when you drive through the state. >> we drove here from san antonio to corpus christi, and a lot of farmers switched their crops to cotton, and now that cotton is come into harvest. and now the cotton, when you want to harvest it, you don't want rain, you want it to be nice and dry and it gives it quality and a better yield. most people want the rain and want it seriously, and there is a serious dent that needs to be made, and in a lot of cases between houston and san antonio, they are over a foot below average as far as rainfall.
it has been over 700 days that u.s. has seen a tropical storm. and they are hoping that tropical storm bob makes a direct hit tonight. >> thank you. reminder to vote today for a choose the news story. text 22360. text "1" for born addicted. the mother's account of taking a pain killer during the pregnancy and the fears about the affects on her newborn, and "2" for cyber soldiers, and then "3" for technology art exhibit. it's a unique showcase of items that could be part of our every day lives. winning story will air in the next hour. top of the hour. i am suzanne malveaux. i want to give you up to speed. we're almost out of time.
those are the words from president obama just a short time ago. the deadline, four days away. and congress and the white house are gridlocked. >> the debt ceiling does not determine how much more money we can spend, it simply authorizes us to pay the bills we already wracked up. it gives the united states the ability to keep its word. >> and boehner trying to wrangle enough votes to pass, and senate democrats say even if it passes the house, they will not support it. the debt crisis, it's not the only news that investors are worried about today. we have new numbers that show the economy grew at a sluggish pace during the second quarter
of the year. the gross domestic product measures all goods and services in the united states, and it rose just by 1.3%. in norway, a day to honor the victims of last friday's deadly bombings and shootings. mourners gathered to honor those killed in oslo. police are questioning the suspect for a second time. from poland, a report placing the blame for last year's plane crash that killed the country's president and almost 100 others. investigators say pilot error was mostly to blame, but russian air traffic controllers and bad weather also played a role in the crash. almost two years after the ft. hood shooting spree, police may have stopped another attack
on the post. they arrested an awol american soldier after fbi agents found potential bomb-making materials in his hotel room. he reportedly told investigators he wanted to attack troops at ft. hood, and his arrests triggered by a gun shop salesman. >> he showed up here in a taxicab. how many people go shopping at gun stores in a taxicab. >> rang it up, and he took it without his receipt or change. >> left without his change? >> yeah, wasn't much. like 18 cents, 20 cents. planes continue to hammer libya, but despite gains on the battlefield, rebel fighters just lost their commander. he was killed in the port city
of benghazi. meanwhile, a woman who told the world that she had been raped by gadhafi's forces and fled for her life is now living in the united states. she flew into new york last night and boarded another flight to a final undisclosed location. the former astronaut who attacked a romantic rival is forced to retire from the navy. prosecutors said lisa nowak drove from houston to orlando wearing diapers to avoid making pit stops, and then attacked a woman dating her love interest, and her lawyer denies that she wore those diapers. the clock is ticking. most of us are just trying to figure out what we need to do with our mortgages, retirement
accounts and investments and those kinds of things. a money experts here to talk about that. we need you, clyde. help us understand what is it we need to do? let's talk about investments. 401(k)s. should we pull our money out? >> i would not say pull it out, but we need to know what is in it. so you definitely want to talk to your broker, or whoever manages that 401(k) to manage that. >> should we do it before the deadline? >> do it as soon as possible. you want to know. you definitely want to know. >> what about making large purchases, like buying a home, for instance. is it a good idea to do that now? >> this is a great time to buy a house regardless, so definitely
now as rates are at an all-time low, because rates are going to go up. this could be the catalyst to drive rates up if we have a decision that comes about next week. if you are looking at buying a car or house, this is a great time to do it. and they are already on sale and now you have a brat that is beautiful, and it's a great time to do. >> refinancing? now the time? >> yeah, as well. if you are looking to get that lower rate as well, and the problem people are having is they don't have the value in the home, and if you have the equity to refinance, definitely look at that. >> we will have a quick break and talk about buying gold afterwards. lots of questions we have for you. you heard about the gold prices going up. we're going to see if this is a good time to buy gold and precious medals. more with collide in a second. s. citracal.
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here is a rundown of some of the stories we're covering the next hour. is investing in gold a better option? we will talk to the experts. some of the politicians owe a lot of money themselves. and chaka khan gave me a interview, and here that interview. and then a libyan woman who was beaten and raped by gadhafi forces is living in the united states. and you might call this
reality tv. unbelievable drug traffickers hire camera crews to capture the violent moments of their day-to-day lives. we have been talking with financial adviser, money adviser clyde anderson, about what we need to do here because there is a possibility of financial disaster just four days away, and a lot of people very concerned about this. >> definitely should be. >> talk about gold. should we be investing in gold? >> it's a great investment, but you have to be smart. right now gold is at about $1,600 an ounce. the thing i tell everybody, we are printing more money but not making more gold. it's not possible. it's a commodity that you may invest in, but don't fall for the buying coins.
we're seeing the signs pop up, we're buying gold. it's increasing in value. buying some of the gold coins, you're not getting 100% gold. you want to invest in gold itself where it's a commodity of gold. >> should we hang tight and hold off and wait and maybe do nothing until they can figure this out, or should we be doing something? >> again, at least educating ourselves. some of us don't know. look into these things, and the gold and 401(k), and find out what is inside of there, because you don't want to be blind-sided, and so you definitely want to know and you want to be patient at the same time. you don't want to make a rash decision, but a smart decision >> what is the one thing you would advise people to do? >> if you are going to buy a
home, do it now, and maybe make sure to invest in other things. congress cannot seem to come up with a plan to balance the country's budget, so a husband and wife in new york state came up with their own plan to reduce the debt, and they said they got tired of waiting for washington to get its act together. they set up a nonprofit so people can make contributions to help balance the books. >> we give our contributions to the department of the treasury in a condition that it only be used to reduce the public debt. >> we will put inasmuch time as we need to for this cause.
>> they say they have gotten contributions from their own county and from as far away from hawaii. they want people to get involved here. i understand we have some news about deal making on the boehner bill. what do we know? >> reporter: well, it appears there could be a break through here in terms of getting a debt ceiling bill through the house of representatives. now, while leaders are not yet predicting that they have all the votes, members that we have been talking to as they were just now leaving a closed door meeting, republicans say they think they are there, and a definite change from yesterday's evening. they are tweaking the language of the bill and very briefly for the viewers so they can understand it, they will now make the second hike in the debt ceiling that would happen early next year, making that
contingent upon congressional passage that congress passes the balanced amendment, and the earlier language was that there was a vote. this is -- this is, as we are told, this was part of the discussion last night and it seems maybe members slept on it and we are seeing firm nos last night are now becoming yeses. and cantor was asked, do you have the vote, and he said i think we do. we could be possibly seeing a vote sometime later today, and looking like it could be into the evening. >> if this does pass in the house, does it make it any more likely it will be passed in the
senate side? >> to be honest, doesn't seem like it, of course. they would have to see what the exact language is of the amendment, but as we said early on, they said that that bill was dead on arrival, but we will have to see how it goes. >> kate, we understand senator harry reid is speaking now. >> right-wing leaning bill, that is called the boehner plan. it's really hard to comprehend the confusion that they have had over there and they are still having today. it's really time that they legislate, as we know they are having trouble doing that. it changed so many times, and they basically have given the
right wing more than what they had before. the senate, we have proposed compromise. as fred thompson said, the republicans have gotten what they wanted, and they should put their chips in their pockets and go home and declare victory. it's really -- what we have now as our amendment is one that reduces the debt, extends the debt ceiling until march of 2013, and it's raised the number to over $2.4 trillion. so it's real compromise directed towards the republicans. so i am going to today, as i did on the floor this morning, ask my republican colleague starting with senator mcconnell to give me ideas as to what you think
would improve my legislation, keeping in mind, as i said on the floor, there will be no agreement if it's a short-term extension. we will not do that. and my caucus supports that fully. right now this is the only compromise there is, obviously. obviously. what is being done in the house is not a compromise. it's being jammed through that with all kinds of nontransparent dealings, people shoveliuffling and out of the officers. we -- the republicans, i have had a number of republicans come to me, and i had one republican come and say thanks for your legislation. we had meetings with the number of republicans last night,
various of the senators, and they feel concerned that we're not arriving at a compromise more so than we have now. we want to do that. i repeat, i have asked my friend, senator mcconnell to meet with me to try and work this out, and i am con ffident will, i hope, come back and make suggestions he has. the stakes could not be higher. the security of our nation, and every family is at stake here. if the debt ceiling is narcotic increased, every american family will feel an increase in their taxes in various ways, higher payments on all their debts, credit cards, loans they have taken out to put their kids through school, and car payments and mortgages on their houses. i say to my republican colleagues here in the senate, do the right thing, and put the interest of the country ahead of the tea party extremists, and
they are the ones driving that, and they are all in town and that's what the news said, and they came and made all these demands. the people that we all represent want us to come together in a bipartisan method. compromise is not a bad word. we hold our arms out to the republican colleagues to visit and talk with me to strengthen my legislation. senator durbin? >> thank you, senator reid. monday night we had an announcement and -- >> you have been listening to the democratic leadership on the senate side. i will bring in kate bolduan, and kate you have been listening to this as well, and clearly the democrats on the senate side, they are not impressed with what we have heard on the house side from the republicans in terms of their own bill, their own plan there. if neither one of these plans is passed, the house plan and the
senate plan, that they don't come to some sort of agreement on a plan, what happens next? is there another plan that is out there? is there another path or way to avert what some are seeing as a financial crisis? >> it's a very good question. right now it does not seem like there is some secret compromise that is being negotiated. what we are seeing right now is the house of representatives trying to move forward with what they can, and we are seeing there could be a break through on that. you are also seeing in the senate, the democratic controlled senate, they are pulling for support over there, and you just heard from the leader of the senate and of the majority there, he said they could not support a short-term extension. if the addition of the new language is really the only change, that still means the senate is not going to approve it, and it's not going to fly in the senate. so while we are talking about these breakthroughs, it's
frustrating for the viewers at home if it seems it will pass in the house and it will not go anywhere in the senate, and that's not getting things done. and harry reid was making a plea to come to the table and compromise, and we are waiting to see if, when and how that will happen. >> i know there has been talk about whether or not the white house and the president would act on his own through the constitution to try and get the debt ceiling raised on his own without congress, is that likely to happen? right now, it's kind of anybody's game. up here, i will tell you that that will not be taken well as many members are saying that this is congress's responsibility, and they think this is the path that this should follow, but to be honest, as we head towards the 11th hour, if people don't think we're already there, it seems like its anybody's game and it
seems everybody ball game. everybody has their eye on the deadline and everybody has their eye on the markets. >> excellent reporting. thank you. we will have much more on this after our break. ♪ some old and then some new tricks ♪ ♪ i'm very versatile ♪ so let me entertain you ♪ and we'll have a real good time ♪ [ male announcer ] with beats audio and flash, you can experience richer music and download movies straight to the new hp touchpad with webos.
with her and got her take on what matters. ♪ >> reporter: "tell me something good" was a hit in the '70s. she recently performed at the festival in new orleans, but wanted to do more. >> it started when i found out i would do essence again, and i didn't feel right putting on fancy clothes and getting on stage and singing and then leaving. >> reporter: she hooked up with a organization dedicated to improving the lives of disadvantaged women of color. she will work closely with 50 women in the new orleans area, and participating in a program to get themselves back on track. >> these are the stages of challenge. some of them have health
problems and some are living from their cars. >> reporter: what do you want to give them? >> a sense of power, over what happens to them in the future. >> reporter: khan has had her own life challenges. seven years ago she went through drug and alcohol rehab. >> i had to stay there, and no contacts with anybody. while i was in there i lost my voice and could not sing. i had to learn to like myself, and pretend that i did. until i did. i am still working on that part, too, still. >> what gave you the strength to get beyond perhaps that moment when you hit the bottom? >> well, i knew that i had a calling. and i have a lot to do. for other people. >> reporter: you grew up in chicago, and what do you think of your fellow chicagoans, the
obamas? >> i think he is doing a bloody good job. they got it together. they are strong people. >> reporter: despite the fact we have a black president, we have not gone far enough as far as civil rights? >> no. >> reporter: why? >> because i see it, but it's in more ways. putting people out, land grabbing, and i think the educational system is really a wreck. i think that a lot of that is really biased, not so much by color but more by what you can afford. >> reporter: economically. so will still have a way to go? >> yes, we do. yes, we do.
>> we will check back with her to see how the project is going with 50 women in new orleans. americans are lashing out at congress and the white house over their failure to agree on this debt limit plan. >> these idiots up there can't do anything about it. they're wanting to -- they just ought to raise the debt and deal with everything else, but they know they can't do that, so they just -- it's a waste of time. they are saying we will hold everybody hostage while we get what we want. >> we will fill you in on where the debt limit battle stands right now. [ jon ] we don't just come up here for the view up in alaska. it's the cleanest, clearest water. we find the best, sweetest crab for red lobster we can find. yeah! [ male announcer ] hurry in to crabfest at red lobster. the only time you can savor three sweet alaskan crab entrees all under $20, like our hearty crab and roasted garlic seafood bake or snow crab and crab butter shrimp. [ jon ] i wouldn't put it on my table at home,
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material in his hotel room. and we are joined by phone by ed who just got out of the hearing. i hear there is a new development. >> reporter: it was an initial appearance by private abdo. he walked into the courtroom at the federal courthouse in waco, texas. he was wearing a white jumpsuit and shackled around the arms and feet, and there was a heavy police presence, nine marshals surrounding the soldier. everybody stood up as is common procedure when the judge came in, and he refused to stand up and the two u.s. marshals yanked him up by the arms to force him to stand up. they went through the process where he had one count of
possessing an illegal firearm, and that was the only charge brought up in the court hearing this afternoon, and then as everybody was wrapping up, abdo was being escorted out of the courtroom, and he started talking loud about a young rockie girl who was raped and killed by iraqi soldiers, and then gave a shout-out to nadal. so a bizarre kind of way to start -- actually did not do himself many favors here in terms of gaining any kind of sympathy with his behavior in the courtroom. >> very dramatic developments. the threat of the financial disaster over the debt limit is now just four days away.
here is a quick look at where things stand now. house speaker john boehner, and sources say that he may have enough votes to get his plan through the house. sources say boehner's plan is being tweaked to include a congressional vote on a balanced budget amendment. senate democrats say they will not support the boehner bill. moments ago harry reid called for a compromise. he said he is open to suggestions to change his plan. while congress debates the national debt, millions of americans are dealing with their own personal economic crisis. one of the group's hardest hit is african-americans. the national unemployment rate is 9.2%, but unemployment in the black community is 16.2%. it's even worst among black youth. it's even 40%. joining me to talk about this is desiree rogers, now ceo at
johnson publishing company when publishes "ebobony" magazine. why is it the unemployment rate is so much higher for african-americans? >> i don't have the answer to that, but what i can say is the trend, as you mentioned the numbers as extremely troubling. we basically are stuck at a quarter of the black american population being, you know, poverty ridden what is called the abandoned ones, and the question is how do we reverse the trend of such a large decrease even in the income that black americans are trying to achieve in the last ten years. this is a major issue in this country. we are seeing that the numbers really are terrible.
so how do we begin to address that? yesterday was absolutely a step in the right direction. the room was filled with young black americans anxious, you know, many of them working already in jobs, entrepreneurship, and really pulling together and trying to work this issue. but i think we have to hold hands and figure from the ground up what can we do, because what we have right now is not working. >> as the ceo of a major corporation, what can the business community do? >> one of the things that we're doing is, and the companies that i represent have been around 65 years, and years and we're in the process of reinventing those magazines. we have jobs available. we got out there and asked for the support from the community that has occurred and now we are able to grow the business.
i think it requires a lot of hard work on the part of business, but we are seeing some end roads. we did a deal with jp morgan chase, and obviously a large bank working with us. we still have majority ownership, but the business is going to grow. i think it is going to be one step at a time. >> just watching what is happening in washington with the whole debt crisis and potentially a financial crisis next week, could it impact the minority community, the black community disproportionally, could there be signs of even more economic suffering? >> without question. i mean, i think one of the trends that we are seeing played out in washington is the whole idea that america is so diverse now that there are so many opinions and so many splintered groups that we are really losing sight of just the individual american, and what this might mean to them, you know, whether it is higher mortgage rates for those that have adjustable
rates, or more difficulty getting loans or the cost of loans. this is going to impact anybody, anybody that has credit cards or student loans. if you break it down to the individual person, the minority community is already hurting. to have this layered on top of that is really just detrimental to the community that is already struggling. >> desiree rogers, we appreciate your look. we will have a look at the markets after the break. it's just like wow! tempur-pedic the most highly recommended bed in america. tempur-pedic is rated #1 in comfort. sleep satisfaction. and back support. it fits the curvature of your body but you don't sink in and it is firm. proprietary tempur material suppresses motion transfer. this means that when you get in or out of bed, you won't disturb your partner.
it. it does not like uncertainty and wants to hear that a deal is going to get done, so there is worry about whether the u.s. is going to pay off, avoid this potential for default, but there is also concern about government spending coming to a halt, which really could hit the economy hard. the stock market right now, the dow industrials off about one-half of 1%, and for the week as a whole, off more than 4%. a tough week in the market. concern has grown through the week. in the bond market, we also have seen people moving away from very short-term securities fearing that the u.s. government may not make its payments in the next week or two, and so they are moving in long-term bonds, ten years or 30 years out, no worry the u.s. will pay, but for short term, people are moving out, and that's a big adjustment in the bond market. >> allen, thank you. she has been on the run
since march, when she accused libyan soldiers of rape. now, she is safe in the united states. we're looking back at her long journey. the way that i look at things." sparking that interest and showing them that math and science are exciting... it's why i teach. ♪ i know they can, even when they think they can't.
raped and claimed her attackers were the soldiers of leader, moammar gadhafi. that was in march, and since then she has bounced around the globe searching for a safe haven. well, she spoke in april about why she came forward in the first place. >> translator: so the whole world can know what is happening in libya. libya has lived many, many years without media exposure, without exposing the facts. let the world know what is happening. especially women. i was raped and kidnapped, and at the same time the truth is coming out, and nothing remains hidden. >> reporter: what should the world no about you as a person apart from the terrible things that have happened to you? >> translator: i am an ordinary libyan citizen, muslim and
conservative, and everything that said about me is a lie, i am well educated unlike the way the libyan tv portrayed me. i am not mentally challenged like they said. just because i raised my voice and talked to the media, they blamed me and questioned my sanity. >> now, she has finally found a safe place to hide here in the united states. she flew to new york late last night and boarded another flight to a final, undisclosed location. akese happy ♪ ♪ when skies are grey ♪ you'll never know, dear ♪ how much i love you ♪ please don't take my sunshine away ♪ [ male announcer ] as long as there are babies, they'll be chevy's to bring them home. ♪
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want to go straight to the white house where the daily brief something beginning. jay carney is there. let's take a listen. >> together they worked closely with teams from the department of transportation and the epa to reach, as i said, an historic agreement on fuel economy. if you have questions for them about their issues, obviously ask them. we will get those done at the top and then i will return to the podium to take questions on other matters. thank you. >> thanks, as jay said, president obama today announced a historic agreement with 13 mayor auto manufacturers -- >> we will go back to the briefing when jay carney is speaking about the debt ceiling debate, and we will be watching
that as it develops. the reality of a bloody drug war being taken to the big screen in mexico. our senior latin american affairs, rafael romo, has that story. >> it's a scene that mexicans have become accustomed to, drug lords and crime bosses paraded into the cameras for a public to see. they have left has many as 40,000 dead in the last four years. this shocking reality made its way on the big screen with a new genre called narco movies. in this movie called "high-powered peoplpeople," the
discuss cartel. the violence in their movies pales in comparison to reality. >> translator: we are not even close to reflecting reality. you could call our movies soft because we don't show as much blood and killings but want to give people what they want. >> reporter: the big bazooka shot, and narcos and dogs are among the most popular. they make sure the screen plays don't rub the cartel the wrong way. >> translator: we deal with these issues in the best way possible. we're not afraid they will come after us because we behave. so far we have not been threatened by anybody. >> rafael romo joins us now.
how popular are the movies, and we hear people are worried about it? >> they are popular in the four states where the violence is concentrated, but the popularity is increasing. >> is there concern there this is glorifying real life violence and crime? >> there is some crime, and there is one governor that banned folks that have to do with violence and drug lords, and now thinking about taking this one step higher and ban the movies, and there are many questions about freedom of expression. you told us what you would like to see. your choose the news story is moments away. let me tell you about a very important phone call i made.
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it's what you make your money on and it's your job and figure it out. >> americans expressing outrage at congress and the white house over the debt limit fight. without an agreement the country will not be able to borrow money days from now. well, it's time for your choose the news winner. we talk to a mother that admits taking pain killers during the pregnancy and now is worried about the affect on her newborn child. >> reporter: broward county, florida, full of pain clinics. doctors handing out what is known as heroin in a pill, like candy. >> look at us! we're desperate and begging you. >> reporter: as one generation
succumbs to prescriptions open yoids, a new generation of addicts is being born. >> we saw the number of crack babies that died, and this is another version of that and we all need to be concerned. >> reporter: during the first half of 2010 alone, 635 florida babies were born addicted. >> i am jessica. i feel good today. casey goes for a follow-up appointment at the doctors, so hopefully they will say she is doing better. >> reporter: for most of her pregnancy she took the prescription oxycodoan. jessica fears the drug use is responsible for casey's freak respiratory infections. >> if you are pregnant and you
know that it's harming the baby and could cause birth defects, why don't you just quit using the pills? >> it's not that easy. you feel like you are going to die. >> reporter: jessica was weaned off the pills before casey was born. those that aren't give birth to babies that begin to suffer with their first breath. >> yeah, the babies go through withdrawal symptoms, and they are miserable and irritable, and they sweat and have rapid breathing and could have seizers. >> reporter: more troubling, researchers don't know what the long term affects of that drug use will be on infants, and neither does jessica. >> i know that i am going through stuff, getting off of the pills. what is she going through? she's just a little baby. she can't talk.
she can't tell me how she feels. i want to make sure that she didn't want for anything, that she doesn't have to hurt anymore than what i already put her through. she didn't deserve that. she's a princess. >> reporter: amber lyon, cnn, florida. you can watch cnn presents on sunday night at 8:00 p.m. eastern. if your choice did not win and want to check out the runners up, i have links to them on my facebook. we can't say nothing has changed in the deadlock over debt limits. this time yesterday the house was due to a vote on a short-term debt hike that stood no chance of ending the crisis. today the house is due to vote on a debt hike that